Dollar Index Overview.
Updated
Hey Trading View. Its been sometime since i have composed an idea on the platform. Quite busy with my trading team.
But today I've taken my Sunday to compose this idea for you all.
Dollar index overview important to my analysis for the week. As its based to a basket of currency.
So well start off with talking its current technical state. The dollar suffered from intense selling for NFP 2 weeks ago.
The intense selling was caused from missing all 3 reports for Non farm payrolls. This selling activity removed the current trend.
Subsequently it has not recovered into the trend for the following week.
On the monthly we have illustrated a broken trend. And a test wick.
The current month has not ended yet as there are 2 weeks left.
My speculation and skill at reading price; tells me the dollar will close lower to end the month. Given we also have Interest rate decisions to release on Wednesday.
Ultimately i believe this release of data will reflect negatively to the dollar. For many reasons. Speculation of lower rates. We just raised rates in December. Even keeping the rate the same can reflect in a negative dollar. But we shall have to wait and see.
This hypothesis can be confirmed against the euro as well. As we had a break in bearish rotation. And a start of a bullish rotation. Opposite of the Dollar.
This method can be applied long term if thought of correctly. This will be the method to trading the EurUsd and XAUUSD also.
Check my Gold Hypothesis. Link below done back in February.
Ultimately my assumptions don't matter. But i like to bring what my mind thinks for others to read.
I can be wrong. And i will still trade what i see. And i think you should do the same.
Cheers.
Lead Trading Strategist- Activ Management
But today I've taken my Sunday to compose this idea for you all.
Dollar index overview important to my analysis for the week. As its based to a basket of currency.
So well start off with talking its current technical state. The dollar suffered from intense selling for NFP 2 weeks ago.
The intense selling was caused from missing all 3 reports for Non farm payrolls. This selling activity removed the current trend.
Subsequently it has not recovered into the trend for the following week.
On the monthly we have illustrated a broken trend. And a test wick.
The current month has not ended yet as there are 2 weeks left.
My speculation and skill at reading price; tells me the dollar will close lower to end the month. Given we also have Interest rate decisions to release on Wednesday.
Ultimately i believe this release of data will reflect negatively to the dollar. For many reasons. Speculation of lower rates. We just raised rates in December. Even keeping the rate the same can reflect in a negative dollar. But we shall have to wait and see.
This hypothesis can be confirmed against the euro as well. As we had a break in bearish rotation. And a start of a bullish rotation. Opposite of the Dollar.
This method can be applied long term if thought of correctly. This will be the method to trading the EurUsd and XAUUSD also.
Check my Gold Hypothesis. Link below done back in February.
Ultimately my assumptions don't matter. But i like to bring what my mind thinks for others to read.
I can be wrong. And i will still trade what i see. And i think you should do the same.
Cheers.
Lead Trading Strategist- Activ Management
Note
The Accuracy is chilling.Note
Okay since the accuracy of this analysis was proven accurate. We can now pay attention to adverse pairs for bullish momentum. And a reduce in dollar strength over the more long term.
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